Egypt says disputes with Dubai's DAMAC are resolved

May 15, 2013|Reuters

CAIRO, May 15 (Reuters) - Egypt said on Wednesday it hadsettled disputes with the Dubai-based developer DAMAC involvingprojects dating back to the Mubarak era - an agreement thegovernment hopes will reassure prospective investors.

The government said the settlement covered three disputes:two involving housing projects near Cairo and the thirdinvolving a piece of land on the Red Sea. It said the deal meantDAMAC would withdraw a suit against Egypt filed with theInternational Center for Settlement of Investment Disputes inWashington.

The government said the settlement would spare Egypt therisks of international arbitration, safeguard its image abroadand reassure investors scared off by continuing politicaluncertainty.

DAMAC could not immediately be reached for comment.

It filed its international arbitration case against Egypt in2011 over the conviction of its chairman and owner, HussainSajwani, in connection with a 2006 land deal in Gamsha Bay onthe Red Sea.

Several cases alleging that president Hosni Mubarak'sgovernment sold off land too cheaply have gained momentum sincehis overthrow in February 2011.

Sajwani was convicted in 2011 in absentia and handed afive-year prison sentence. The case also resulted in a five-yearsentence for Zoheir Garranah, a former tourism minister, who wasfound guilty of squandering public funds by selling the land toocheaply. Damac described it at the time as a case of guilt byassociation.

Under the settlement announced on Wednesday, ownership ofthe land will be restored to the state.

Founded in 2002, DAMAC has completed 37 buildings and hasanother 66 buildings under construction across the Middle Eastand North Africa.($1 = 6.9691 Egyptian pounds)